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At least one sister of "Missionaries of Charity" in Ranchi was arrested for her involvement in the illegal trade of children after taking a huge amount of money from the couples keen to adopt children.

Two persons including a nun of the Missionaries of Charity established by Mother Teresa, have been arrested for selling children, police said on Thursday.

Police officer Kumar said 100,000 rupees ($1,900) was recovered from the two who were arrested.

This isn't the first time that the Ranchi branch of Missionaries of Charity has faced such an allegation, Dr OP Singh, who took over as the head of the child welfare committee in 2013. "We will take all necessary precautions that it never happens again, if it has happened", Sunita Kumar of the Missionaries of Charity told the BBC.

The arrested women could face up to five years in prison for selling a baby from the institution, AFP reported.

Members of the Child Welfare Committee (CWC), Ranchi and the police interrogated the nuns at the premises of Missionaries of Charity, "Nirmal Hriday" on July 4, after an FIR was lodged on grounds of trafficking underage tribal girls.

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"We are completely shocked".

The scandal blew up earlier this week after local child welfare authorities informed police about a newborn missing from the home, which is meant to care for unwed pregnant women and mothers in distress.

Speaking with news agency PTI, the chairperson of Ranchi Child Welfare Committee said, "The UP-based family claimed that Anima Indwar, who handed over the child to them on May 14, had called them up on July 1 and asked them to visit the shelter home for completing certain formalities".

Denying the charges, a Missionaries of Charity spokeswoman quoted by the Associated Press said the order had stopped giving children up for adoption three years ago and had never taken money from parents.

Kumari said that when sisters in Missionaries of Charity were summoned by CWC, they recorded contradictory statement following which Anima and biological mother of the child was called who revealed everything before them. The couple told Verma that they paid Rs 1.2 lakh on May 1 to get the boy's custody. "We are carefully looking into the matter". Indwar also said she had done it with the help of Sister Concelia, the officials said.

A mother and baby home in India set up by Mother Teresa has been accused of selling babies off to married couples.